“I am very interested in storage units. I live near a college and there are many storage units there but where I am, there are not many that I’ve seen. Of course population is quite a bit lower as well. How does one go about a feasibility study and would that be a good 1st step to see if demand is high enough? I also wondered how marketing storage for businesses works if you’ve done some of that?”
I always recommend that you do as much on your own before you pay for a Desktop or Feasibility Study. This will save you quite a bit of money in the long run, and will also help you to be familiar with the prospective property.
Basically, if you are buying an existing Facility, you will want to conduct a Market Study (population, median income, demographics, supply index, etc.) but it’s not as imperative as if you’re bringing NEW storage online.
Obviously that needs to be in context. For example, if ALL Facilities in town are at 50% occupancy, that’s a systemic too much supply. If the prospective one is 50% full and all others are 80% then that would be an under-performing property and not necessarily an under-performing market.
But after you’re done your Market Study, and you decide that it looks promising to move ahead, you order one up. We typically recommend Bob Copper with Storage 101, but I’d try & figure out as much on my own (including are there any new permits/ plans to build) before I just called & order one up.
I hope this is helpful.
I do these as I get questions in! If you have a question that you would like me to take a look at, feel free to leave it in the comments below. It just might get featured in on of our upcoming articles!